Medical technology provider Siemens Healthineers has joined forces with DHL Supply Chain (part of Deutsche Post DHL Group) to develop a comprehensive service logistics agreement in the U.S. An important focus of the partnership will be the use of digital and robotics technologies designed to deliver continuous quality and cost improvements within the supply chain of Siemens Healthineers.
The two companies will invest in a state-of-the-art World Distribution Center in Memphis, Tenn., which will be operated by DHL Supply Chain. The distribution center will incorporate DHL’s proprietary warehousing and inventory management system along with innovations geared toward maximizing efficiency and productivity, such as automated storage and retrieval systems and augmented reality-assisted picking. Digital technologies such as DHL’s MySupplyChain application and GPS tracking for final mile delivery will provide engineers with additional transparency, visibility, and control over their orders and returns.
“The Americas is an important growth market for Siemens Healthineers, and the quality, flexibility and speed of the service logistics platform we have established in the region helps us better serve our customers,” said David Pacitti, president and head of the Americas for Siemens Healthineers. “Working with DHL Supply Chain, we have an exciting opportunity to further strengthen our services and support our company’s ambition to deliver a digital advantage for our customers and their patients in this region.”
DHL Supply Chain and Siemens Healthineers have entered into a 10-year service agreement in which Siemens Healthineers will occupy about 260,000 sq ft of a 422,000-sq-ft facility that DHL has purchased. This new site was the first speculative distribution facility built in Memphis since 2007 and will employ about 105 associates.
“Thanks to Siemens Healthineers’ leadership in medical technology and their commitment to transforming care delivery through increased digitalization, we believe that we have an opportunity to jointly leverage our capabilities and to generate substantial value in their supply chain,” said Scott Allison, chief customer officer, global service logistics, DHL Supply Chain. “We will also be applying our expertise in contract logistics and the capabilities of our broader service logistics network to target cost savings in materials procurement, labor sourcing and carrier management.”